Role of Forensic Accounting in Fraud Detection: Perception of Chartered Accountants in Ahmedabad

Abstract

Financial fraud has become a major concern for organisations due to increasing complexity in business operations and financial transactions. Traditional auditing methods are often inadequate to detect sophisticated and well-planned frauds. In this context, forensic accounting has emerged as an important tool for effective fraud detection and prevention. The present study aims to analyse the perception of Chartered Accountants towards the role of forensic accounting in fraud detection and to examine the association between their demographic profile and perception. The study adopts a descriptive research design to understand the existing views and professional opinions of Chartered Accountants without influencing or manipulating any variables. Primary data were collected from 188 practising Chartered Accountants in Ahmedabad using a structured questionnaire. A random sampling method was used to ensure unbiased selection of respondents and better representation of the population. The collected data were analysed using appropriate statistical tools, including a one-sample t-test, to evaluate respondents’ perceptions. The findings of the study reveal that Chartered Accountants have a positive perception towards the role of forensic accounting in detecting financial fraud. Respondents strongly agree that forensic accounting enhances fraud detection, reduces fraud risk, strengthens internal control systems, and overcomes the limitations of traditional auditing methods. The study highlights the growing importance of forensic accounting as a professional tool and suggests the need for wider adoption, training, and awareness among Chartered Accountants to effectively address increasing financial frauds.